Tag: KBE

S&P in Overbought Correction

Tuesday trading action suggested that market had finally reacted to overbought conditions. The fact that the March rally failed to climb above the important sentiment 2900 mark on the S&P suggested that long-term buying pressure has finally been exhausted. The stronger the resistance level, the more powerful the selloff. This is the danger in the current market

Look to Trim Positions into Overbought Strength

the fact that the S&P is overbought as it fast approaching key overhead resistance suggested that upside gains could be limited. As for strategy, we’d look to trim positions into overbought strength, which might take the S&P closer to 2880 before a significant pullback unfolds

S&P Broke Important Support but Follow-through is the Key

S&P broke key support Wednesday, signify a bearish trend reversal. Nevertheless, it will be important to monitor the retreat and rebound behaviors to determine whether breakouts are decisive. Right now follow-through is the key. A close below 2750 this week would see a pickup in near-term volatility and bring the trend channel moving average, currently at 2666, into view

Bulls Need to Clear S&P’s 2760 quickly or Market Will Fall Under its Own Weight

we wouldn’t look too much into last week’s trading action because it keeps the S&P within its short-term oversold consolidation phase. Momentum has weakened as S&P moved up to test resistance near the 2750-2765 zone. The longer the index stays below that level, the more vulnerable it is to lower prices. With that said, the bulls need to clear 2760 quickly or market will works off oversold conditions and fall under its own weight

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